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OPPOSITION LAUNCHES INQUIRY INTO WORKCOVER PREMIUMS

News Release - Tuesday, 5th September 2000

The Liberal Opposition has today moved to establish a Legislative Council inquiry into WorkCover premiums by the all-party Economic Development Committee.

Upper House Opposition Leader, Mark Birrell, gave notice in State Parliament of a motion for debate tomorrow to seek an inquiry into all aspects of WorkCover premiums for 2000-01, including o the reasons for the level of premiums and the manner in which they were determined; o the impact which premiums are having on the State budget and on economic activity, employment and services; o whether the Government can or should take action to reduce or compensate for adverse impacts of the premiums; and o whether changes should be made in future to the way premiums are determined.

Mark Birrell said the proposed Parliamentary inquiry will have the power to hold public hearings, hear submissions from employers, employer organisations and other interested parties, call witnesses and require the production of documents.

"Victorians are entitled to a full explanation of the massive WorkCover premium increases and to know what opportunity there is for the Government to introduce genuine measures to ease the burden. The public are entitled to know what effect Labor's increases will have on the economy and on services, and whether there is a better way of setting WorkCover premiums in future," Mr Birrell said.

The last all-party Parliamentary inquiry into workers compensation was held in 1987-88 under the Cain Government.

"This is a key issue as it directly affects the viability of businesses in Victoria. The Legislative Council will ensure it is investigated publicly," he said.

Shadow WorkCover Minister, Robert Clark, said the Labor government had failed to acknowledge or adequately respond to the impact that WorkCover increases were having on businesses and service providers across the State. Nor had Labor provided any adequate explanation of how the level and allocation of premium increases had been determined.

"Every day the Opposition is hearing from small and medium size employers that these increases have forced them to lay off staff, reduce working hours, or put off new employment," Mr Clark said.

"The Labor government has also failed to provide any additional funds to cover the massive premium increases being experienced by Government or community agencies. Organisations such as the Country Fire Authority, health services and intellectual disability groups have been caught short and may have to cut back services.

"The measures which the government has announced to date have merely provided a very temporary stay of execution for employers rather than any genuine reduction in the burden. As well, the government's explanations of the increases have been incorrect, misleading or contradictory.

"For example, the government claims that the premium rate increase averages 17%. However, the typical rate increase in more than half of all industry classifications in the State is over 39%, with a 17% typical increase in most other classifications.

"The Labor government has repeatedly failed to explain to employers how this can be the case."